Professional Documents
Culture Documents
Social Technological
oChange in consumer profile o Effective use of technology
oChange in lifestyle seen in only leading
oRural focus companies
o E-commerce will boost
FMCG sales
Introduction of company
Founded 24 August 1910
(as Imperial Tobacco Company
of India)
Opportunities Threats
Tap rural markets and increase. Govt. regulations
Mergers and acquisitions to Intense and increasing competition in
strengthen the brand FMCG
Increasing purchasing power of
people
More publicity of hotel chains
Literature Review
Cosmetics concept In European legislation, a cosmetic product4 is
any substance or preparation intended to be
placed in contact with the various external parts of
the human body (epidermis, hair system, nails,
lips and external genital organs) or with the teeth
and the mucous membranes of the oral cavity
with a view exclusively or mainly to cleaning
them, perfuming them, changing their appearance
and/or correcting body odors and/or protecting
them or keeping them in good condition.
Impact of promotions Vecchio, Del, Devon et.al. (2006) 5 report the
results of the study, which examined the effect of
sales promotion on brand preference through
Meta analysis. Results of 51 studies had been
integrated. As per the study sales promotions do
not affect post promotion brand preferences in
general. But depending upon characteristics of
sales promotion and the promoted product,
promotion can either increase or decrease
preference for a brand.
Literature Review (Cont.)
Consumer perception Vyas, H. Preeta (2005)30 attempted to study
consumer preferences with respect to sales
promotion in FMCG category. It was found that
sales promotion offers which is unique, which
offers immediate incentive preferably of price-cut
nature is likely to appeal to all consumer
segments.
12%
88%
Savlon HW availability in only Hand wash
handling outlets
Savlon Hand Wash Available
No
28%
Yes
72%
Availability SKU wise
Availability SKU wise
250
200
150
50
0
10ml Sachet 185ml Pouch 220ml Pump 500ml Pouch 800ml Pouch
Unavailability Reasons
Unavailability Reason
100
90
80
30
Unavailability Reason Not satisfied with
schemes
20
10
0
10ml Sachet 185ml Pouch 220ml Pump 500ml Pouch 800ml Pouch
Competitors Availability
Competitors Availability
300
250 245
200 193
150
100
52
50
25
0
Dettol Lifebuoy Santoor Patanjali
Rate Competition
Rate Competition
100
90
80
70
60
50
Rate Competition
40
30
20
10
0
Highly Competitive Competitive Avg Competition Low Competition No competition
Impact of Competition on Sales
Impact of Competition on Sales
Yes No May be
2%
17%
81%
Brand Image
Brand Image
90
80
70
60
50
Brand Image
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Rate Prices
Rate Prices
140
120
100
80
Rate Prices
60
40
20
0
Excellent Good Avg Poor Very Poor
Awareness Promotion
Awareness Promotion
Yes No
20%
80%
Rate Promotions
Rate Promotions
100
90
80
70
60
50
Rate Promotions
40
30
20
10
0
Excellent Good Avg Poor Very Poor
Preferred Medium of Promotion
Preferred Medium of Promotion
300
250
200
150
Preferred Medium of Promotion
100
50
0
Visual Audio Print Special Campaign
Awareness Schemes
Awareness Scheme
Yes No
25%
75%
Rate Schemes
Rate Schemes
140
120
100
80
Rate Schemes
60
40
20
0
Excellent Good Avg Poor Very Poor
Hypotheses
Promotional awareness & availability
Hypothesis:
H0: There is no significant association between Promotional awareness and
availability of Savlon Hand Wash
H1: There is significant association between Promotional awareness and
availability of Savlon Hand Wash
Chi-Square Tests
Interpretation:
Value df Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-
sided) sided) sided)
As the significance level in
Pearson Chi-Square 91.621a 1 .000
chi-square test is less than
Continuity Correctionb 88.661 1 .000
0.05, therefore we will
reject the null hypothesis
Likelihood Ratio 96.032 1 .000
and accept the alternative
Fisher's Exact Test .000 .000
hypothesis which says that
Linear-by-Linear
91.293 1 .000 there is significant
Association
relationship between
N of Valid Cases 279
awareness of promotional
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 20.30.
b. Computed only for a 2x2 table
activities and availability.
Scheme awareness and availability
Hypothesis:
H0: There is no significant relationship between scheme awareness and
availability of Savlon Hand Wash
H1: There is significant relationship between scheme awareness and availability
of Savlon Hand Wash
Chi-Square Tests
Interpretation:
Value df Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-
As the significance level is
sided) sided) sided)
below 0.05, therefore we
Pearson Chi-Square 66.160a 1 .000 will reject the null
Continuity Correctionb 63.111 1 .000 hypothesis and accept the
alternate hypothesis.
Likelihood Ratio 76.152 1 .000
Therefore there is
Fisher's Exact Test .000 .000 significant relationship
Linear-by-Linear Association 65.922 1 .000 between owner suggesting
visual medium of
N of Valid Cases 279
advertisement and
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 12.55.
availability.
b. Computed only for a 2x2 table
Owner selecting audio medium of
advertisement and availability.
Hypothesis:
Ho: There is no significant relationship between owner selecting Audio
medium of advertisement and availability.
H1: There is significant relationship between owner selecting Audio medium of
advertisement and availability.
Interpretation:
Chi-Square Tests
As the significance level is
Value df Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-
below 0.05, therefore we
sided) sided) sided)
will reject the null
Pearson Chi-Square 17.726a 1 .000
hypothesis and accept the
Continuity Correctionb 16.609 1 .000 alternate hypothesis.
Likelihood Ratio 17.404 1 .000 Therefore there is
Fisher's Exact Test .000 .000 significant relationship
Linear-by-Linear Association 17.662 1 .000
between owner suggesting
print medium of
N of Valid Cases 279
advertisement and
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 31.38.
b. Computed only for a 2x2 table
availability.
Owner selecting special campaigns
medium of advertisement and availability.
Hypothesis:
Ho: There is no significant relationship between owner selecting special
campaigns medium of advertisement and availability.
H1: There is significant relationship between owner selecting special
campaigns medium of advertisement and availability.
Chi-Square Tests
Interpretation:
As the significance level is
Value df Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-
sided) sided) sided)
below 0.05, therefore we
will reject the null
Pearson Chi-Square 5.179a 1 .023 hypothesis and accept the
Continuity Correctionb 4.618 1 .032 alternate hypothesis.
Likelihood Ratio 5.258 1 .022
Therefore there is
significant relationship
Fisher's Exact Test .031 .015
between owner suggesting
Linear-by-Linear Association 5.160 1 .023 special campaigns medium
N of Valid Cases 279 of advertisement and
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 40.98. availability.
b. Computed only for a 2x2 table
Key Findings
The most available SKU in Savlon Hand Wash is 10 ml Sachet.
According to the study, 166 outlets out of 246 outlets are keeping the
10 ml sachet in their outlet, which is 67% approx.
The most general reason for unavailability of Savlon Hand Wash is
lack of demand from the consumer end.
According to the study, the market leader in Hand Wash segment is
Dettol with 48% availability, followed by Lifebuoy with 37% availability.
The competition between the brands in Hand Wash segment is high.
According to the study, there is a significant relationship between the
awareness of promotion and availability, which means that the
retailers keep Hand Wash on the basis of their knowledge about the
promotional activities.
According to the study, there is a significant relationship between
awareness of schemes provided to the chemist retailer and the
availability of the Hand Wash, which means that the retailers keep the
Hand Wash after knowing the schemes.
Key Findings (Cont.)
Most of the retailers think that the best way of advisement is
visual advertisement.
Not all the chemist outlets are aware about the schemes
provided by the company which leads to the unavailability.
The retailers think that the schemes provided by the company
is average in comparison of other competitive brands.
The perception of the retailers about the prices of Savlon hand
Wash is positive.
Some of the retailers purchase the product from modern trade
when heavy discounts are being offered by modern trade.
The perception of the retailers about the promotional activities
is negative.
Recommendations
The Hand Wash can be placed at the outlets, taking
forward the brand name of Savlon Antiseptic liquid.
Company can start providing SMS alert to the retailers to
provide the information regarding the new schemes.
Attractive displays of Hand Wash should be provided to
the outlets in order to increase the consumer awareness
about the Savlon Hand Wash.
Company should focus on the special campaigns in
different areas in order to promote the product.
Conclusion
In the present competitive world the success of the
company depends on satisfying the customers as well as
retailers.
The retailers play a prominent role in increasing the sales
of the FMCG products.
For continuous growth the company has to pay more
attention on billing process, promotion and availability of
brand through constant service and good margins.
Bibliography
Vecchio, D. D. (2006). The Effect of Sales Promotion on Post-
Promotion Brand Preference: A Meta Analysis. Journal of
Retailing, 203-213.
Vyas, H. Preeta (2005), "Measuring Consumer Preference for
Sales Promotion Schemes Through Conjoint Design in FMCG
Sector", Working Paper, NO. 2005-09-08, IIM, Ahmedabad.
Williarn, H. Murphy and Ravipreet, S. Sohi (1995),
"Salespersons' Perceptions About Sales Contests: Towards a
Greater Understanding", European Journal of Marketing,
Volume: 29, Number: 13, pp. 42 - 66.
Wikipedia. (2017). Retrieved from https://en.wikipedia.org/.
ITC Limited. (n.d.). Retrieved from ITC Portal:
http://www.itcportal.com/about-itc/profile/history-and-
evolution.aspx
IBEF India Brand Foundation. (2017). Retrieved from
https://www.ibef.org/: https://www.ibef.org/
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